HSBC launches green repurchase agreements with QNB transaction

HSBC launches green repurchase agreements with QNB transaction

HSBC has launched a new green finance instrument in the Middle East, North Africa and Turkey region that will help increase the short term sustainable funding options for banks and major companies and boost demand for green assets.

Partnering with Qatar’s QNB, this is HSBC’s first green repurchase agreement, or repo, globally. Repos are short-term money market instruments used by banks and major corporations to manage near term liquidity and funding needs.

The global repo market is worth an estimated US$13.4 trillion, according to data provider Finadium1, and connecting liquidity from the traditional repo market directly to green bonds and other related securities should help increase demand – and funding – for those assets.

“Launching a new green product is an important development for the bank and our clients, and further increases liquidity for the institutional green finance market,” said Antoine Maurel, HSBC’s Regional Head of Markets and Securities Services.

“As the Middle East and North Africa region prepares to host the next two global climate summits – COP27 in Egypt in 2022 and COP28 in the UAE in 2023 – HSBC is committed to developing the green finance options that will help our customers on their transition journeys to achieve their net